Avalanche Studios Group Announces Layoffs and Studio Closures
Avalanche Studios Group, the developer behind the Just Cause series and upcoming Xbox exclusive Contraband, has made the difficult decision to lay off approximately 50 employees, affecting around 9% of its workforce. Additionally, the studio will be closing two of its five locations, one in New York and the other in Montreal.
The layoffs come as a blow to the video game industry, which has witnessed significant workforce reductions in recent months. Earlier this year, Xbox Game Studios, the publisher of Contraband, laid off around 1,900 employees. Last month, Microsoft closed several studios, including Hi-Fi Rush developer Tango Gameworks and Arkane Austin. It remains unclear whether Avalanche’s layoffs are related to these industry-wide challenges.
Despite the layoffs, Avalanche Studios remains committed to its upcoming projects, including Contraband, which is slated to be its most ambitious game yet. The studio emphasizes the importance of ensuring a stable and sustainable future for the company, and these measures are intended to support that goal.
Avalanche Studios is best known for the Just Cause franchise, which has received critical acclaim for its action-adventure and driving shooter gameplay. The latest entry in the series, Just Cause 4, was released in 2018 but underperformed Square Enix’s expectations, failing to cover development costs.
In addition to Just Cause, Avalanche Studios has developed other titles such as Rage 2 and Generation Zero under its Systemic Reaction branding. Notably, over 100 developers at the studio unionized last year with the Swedish trade union Unionen. The studio’s commitment to Contraband and its continued operations suggest that it remains a significant player in the video game industry, despite the challenges it currently faces.
